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Effects of patent protection on economic growth and welfare in a two-R&D-sector economy

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  • Saito, Yuki

Abstract

This paper examines the effects of patent protection in a growth model, where final goods firms and intermediate goods firms engage in R&D. The results show that: (i) strengthening patent protection is likely to increase the technology level of the final goods sector relative to the intermediate goods sector in most cases; (ii) if R&D productivity in the final goods sector is lower than that in the intermediate goods sector, the relationship between patent protection and economic growth is an inverted-U shape; and (iii) an increase in R&D productivity in the intermediate goods sector can reduce the welfare-maximizing level of patent protection.

Suggested Citation

  • Saito, Yuki, 2017. "Effects of patent protection on economic growth and welfare in a two-R&D-sector economy," Economic Modelling, Elsevier, vol. 62(C), pages 124-129.
  • Handle: RePEc:eee:ecmode:v:62:y:2017:i:c:p:124-129
    DOI: 10.1016/j.econmod.2017.01.015
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:ecmode:v:75:y:2018:i:c:p:159-168 is not listed on IDEAS
    2. Chu, Angus C. & Shen, Guobing & Zhang, Xun, 2017. "Imports and Intellectual Property Rights on Innovation in China," MPRA Paper 81706, University Library of Munich, Germany.
    3. repec:eee:jmacro:v:57:y:2018:i:c:p:110-121 is not listed on IDEAS

    More about this item

    Keywords

    Economic growth; Patent protection; R & D;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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